LuxeBite – Fast Food, Redefined
The Origin Story
Founded in 2021 by college roommates and culinary school grads Marcus Tran and Alex Garcia, LuxeBite was born from a shared frustration: why was fast food either cheap and uninspired or gourmet but unaffordable? They envisioned a brand that blended affordability with culinary flair, creating an entirely new category they call ‘cheap luxury fast food fusion.’
Starting with a single food truck in Austin, Texas, LuxeBite quickly gained traction on social media for its outrageous yet accessible menu:
- Foie Gras Burger – Served on brioche with caramelized onions and arugula
- Lobster Mac Wrap – Lobster mac ‘n’ cheese rolled in a toasted tortilla
- Truffle Tots – Hand-cut tater tots with truffle aioli
- Katsu Corn Dog – Japanese fried pork belly on a stick, panko-crusted
- Matcha Creamshake – A twist on the classic milkshake, using imported green tea
The Expansion Dilemma
After two years of strong local success and viral exposure through food vloggers and TikTok influencers, Marcus and Alex now want to expand to permanent locations in three major cities: Chicago, Los Angeles, and New York.
They are currently exploring options to raise $2 million in external finance, considering:
• Angel investors from the food-tech industry
• Government-backed small business loans
• Equity crowdfunding through platforms like SeedInvest
However, in meetings with potential investors, one repeated concern has emerged:
“Who exactly is LuxeBite’s customer?”
Refining the Plan
To prepare for their next pitch and future marketing campaign, Marcus and Alex realize they need to develop a more detailed marketing plan. Their mentors advised them to focus on the following:
1. Market Segmentation
LuxeBite’s early customers include:
• Urban Millennials & Gen Z
• Foodies and trend seekers
• Health-conscious professionals open to indulgence
• Late-night snackers
But they’ve never clearly broken these into formal segments or prioritized their most profitable group.
2. Target Market
They now face tough decisions:
• Focus on the social media generation with limited income but high influence?
• Aim at young professionals seeking gourmet on-the-go?
• Or pursue the late-night/college crowd who value novelty and speed?
3. Unique Selling Proposition (USP)
LuxeBite’s working USP:
“Bold gourmet flavors at fast food speed and prices.”
But with copycats already emerging and big chains starting to experiment with limited-edition gourmet items, differentiation will be key.
4. Positioning
Currently, LuxeBite risks being misunderstood:
• Too fancy for fast food lovers
• Too cheap for food snobs
• Unclear against competitors like Shake Shack, In-N-Out, Taco Bell and even the big traditional players like McDonalds and Burger King.
They are considering developing a positioning map to visualize where they stand in terms of:
• Price vs. Quality
• Familiarity vs. Innovation
Task for Students
Q1. Explain the difference between internal and external sources of finance.
Q2. Explain two possible market segments LuxeBite might serve.
Q3. Create a positioning map for LuxeBite and explain how it could help the company in its expansion strategy.
Q4. Using the food industry as an example, explain the difference between a niche market and a mass market.
Q5. Recommend and justify a marketing strategy for Luxebite which includes which source of finance they should choose, where they should look to expand, and which target audience they should focus on selling to.